Energy Consumers Australia says consumers remaining on the declining gas network will be better protected from soaring bills if a proposed amendment to the National Gas Rules is approved.
The Australian Energy Market Commission (AEMC) has opened consultation into the proposed rule change, which will require developers and customers connecting to the gas network to pay the full upfront costs of connecting.
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Under the existing rules, the significant costs of connecting new customers to the gas network are shared among all gas customers. The rule change will ensure that those connection costs are not passed on to existing consumers who face barriers to leaving the gas network, for example, people who rent their homes. In addition, consumers will be able to see the real cost of a gas connection and assess if they wish to electrify instead, depending on their circumstances.
“Australian residential and commercial gas use is expected to decline 72% by 2043 and be largely non-existent by 2050,” Energy Consumers Australia CEO Dr Brendan French said.
In Energy Consumers Australia’s latest national consumer survey, one in three homeowner households using mains gas said they would probably cancel their gas supply within the next 10 years.
“This transition will bring with it countless benefits as consumers who go all-electric will experience lower running costs, healthier homes and businesses, however, as more and more households leave the gas network, the network costs will be shared by an increasingly small pool of consumers,” Dr French said.
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“We’re calling for stakeholders to support our rule change amendment and ensure remaining gas consumers are not left paying an unaffordable share for maintaining the whole gas network.”
This rule change is one of four submitted by Energy Consumers Australia aimed at helping protect consumers in the declining gas market and ensure an orderly transition.
